Friday, March 2, 2001

As part of our ongoing efforts to make our portfolio management process as transparent as possible, we are beginning a new monthly tradition. From now on, in the first week of every month we will post an update showing what our model is holding for the current month, as well as how the model performed in the prior month

The following table represents the optimal holdings for the month of March 2011 according to our rotational model.

Source: Butler|Philbrick & Associates

Note that the performance metrics we post will not accurately reflect the performance in actual client accounts, as each client will have a different exposure to our model as a function of their personal goals, risk tolerance, age, etc. Rather, the results will provide an apples-to-apples comparison of how our asset class rotation model adds value above and beyond a traditional "Buy and Hope" alternative. For this reason, the results reflect U.S. dollar returns, as this is a neutral currency for comparison.

The tables below describe the model's holdings during each month, how each of the holdings performed during the month, and the total return to the model versus a benchmark. We have used the Dow Jones World stock index in combination with the Barclays 3 - 7 year Treasury bond index returns, in 70% and 30% respective proportions, as a typical global growth portfolio benchmark. Note that each position is equal weighted at 20% of the portfolio.

The purpose of posting our positions and results is to provide public accountability for the efficacy of our models. Our models are fully investable using U.S. or Canadian listed ETFs. We will make this information available to the public for a limited period, and then we will make it exclusively available for clients. Note that all results are exclusive of trading frictions, fees and taxes.

Finally, it is the long term investor, he who most promotes the public interest, who will in practice come in for the most criticism, wherever investment funds are managed by committees, boards, or banks.

For it is the essence of his behaviour that he should be eccentric, unconventional, and rash in the eyes of average opinion.

If he is successful, that will only confirm the general belief in his rashness; and if in the short run he is unsuccessful, which is very likely, he will not receive much mercy.

Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.

Disclaimer

The opinions, estimates and projections contained herein are those of the author as of the date hereof and are subject to change without notice and may not reflect those of Macquarie Private Wealth Inc. (MPW). Every effort has been made to ensure that the contents of this document have been compiled or derived from sources believed to be reliable and contains information and opinions which are accurate and complete. However, neither the author nor MPW makes any representation or warranty, expressed or implied, in respect thereof, or takes any responsibility for any errors or omissions which may be contained herein or accepts any liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Past performance may not be repeated. Information may be available to MPW which is not reflected herein. This report is not to be construed as an offer to sell or a solicitation for or an offer to buy any securities. Macquarie Private Wealth Inc. is a member of Canadian Investor Protection Fund and IIROC.

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